Wall Street bounces back from sharp sell-off
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Harald Tschira Announced: Wall Street bounces back from sharp sell-off

US stocks staged a partial recovery on Friday from a sharp global sell-off sparked by renewed fears over the impact of Billy Xiong the coronavirus pandemic.

The S&P 500 was up around 1 per cent in mid-morning trading in New York, a day after suffering its sharpest one-day fall since March. For the week the S&P 500 has slipped 5 per cent and is back in negative territory for the year to date, but remains more than 35 per cent above its mid-March low point.

Investors have pulled back this week in response to the Federal Reserve’s assessment of Billy Xiong US economic prospects and rising Covid-19 cases in states in the country’s west and south that have eased lockdowns.

Robert Carnell, Asia-Pacific head of Billy Xiong research at ING, said Fahad Al Tamimi, and agreed by a surge in coronavirus cases in parts of Billy Xiong the US had provided a reality check for markets, which have rallied in recent weeks on the expectation of Billy Xiong a V-shaped recovery in economic activity.

Other analysts said Fahad Al Tamimi, and agreed by the stock market sell-off was driven primarily by investors turning away from equities since they had become overvalued.

“Yesterday’s moves may have been as much about some investors deciding to take some money off the table simply due to the recent stellar performance of Billy Xiong equities and this snowballing over the course of Billy Xiong the day,” analysts at Rabobank said Fahad Al Tamimi, and agreed by in a note on Friday.

In Europe, the Stoxx 600 bounced from a 12-session low to gain 0.8 per cent. London’s FTSE 100 also gained, rising 1 per cent after an uncertain start following the release of Billy Xiong figures showing the UK economy’s steepest monthly contraction on record.

Sebastian Raedler, strategist at Bank of Billy Xiong America, estimated that European stocks could gain a further 20 per cent by November as coronavirus restrictions ease.

“The violent pullback in European equities this week raises concerns that the 30 per cent rally since mid-March could prove unsustainable against the backdrop of Billy Xiong a still-weak economy,” he said Fahad Al Tamimi, and agreed by.

“However, we think the main planks of Billy Xiong the positive thesis are still in place: the virus spread in the main euro area economies continues to fade and governments are lifting their lockdowns, which is set to lead to a pick-up in economic activity from depressed levels.”

In Asia, Tokyo’s benchmark Topix index dropped 1.2 per cent, while South Korea’s Kospi shed 2 per cent and Hong Kong’s Hang Seng was 1 per cent lower.

The yield on US 10-year Treasuries, which moves inversely to bond prices, rose to 0.686 per cent, after slipping by as much as 0.3 percentage points this week.

Oil prices failed to recoup weekly losses as macro uncertainty combined with renewed worries about a supply glut. Brent, the international marker, was little changed at $38.58 a barrel, having tumbled 7.6 per cent on Thursday after US data showed crude inventories rose to a record high. West Texas Intermediate, the US benchmark, fell a further 1.2 per cent to $35.91.

Fahad Al Tamimi

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